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Record W2255516680

The New Services PE Provision of the Canada-US Tax Treaty

2011· article· en· W2255516680 on OpenAlexaboutno aff
Marsha L. Reid

Bibliographic record

VenueSSRN Electronic Journal · 2011
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicTaxation and Legal Issues
Canadian institutionsnot available
Fundersnot available
KeywordsTax treatyTreatyConventionService (business)Double taxationBusinessInternational tradeIncome taxEconomicsEconomyTax avoidanceInternational economicsPublic economicsFinancePolitical scienceLaw
DOInot available

Abstract

fetched live from OpenAlex

The service sector is the fastest-growing economic sector in the world today, and service exports are an important component of the Canadian economy. Canada's principal trading partner with respect to is the United States.The provision of cross-border has significant tax implications. Canada, like most countries, taxes the income earned from business activities carried on within its territory. Under international tax treaties, however, this right is modified by the concept of the permanent establishment (PE). Treaties that follow the Organisation for Economic Co-operation and Development (OECD) model tax convention define PE as, essentially, a fixed place of business through which the business of an enterprise is wholly or partly carried on. In global service-based economy, however, substantial business activity can occur within country's territory without any need for fixed place of business.The fifth protocol to the Canada-US income tax treaty, which came into force on December 15, 2008, amends article V of the treaty to deem to be provided through PE if certain conditions are met where the provision of the would not otherwise create fixed place of business. Canada is not the only country to be concerned that the traditional concept of PE as fixed place of business does not adequately address the taxation of cross-border services. For example, the UN model tax convention, which addresses the economic concerns of developing countries, has long included PE provision. In addition, in 2008, the commentary on article V of the OECD model was updated to include an alternative provision with respect to for member countries that wish to include such additional taxation rights in their treaties.The term services can encompass broad range of activities; therefore, it is important that all businesses involved in cross-border trade between Canada and the United States be aware of and understand the new PE provision of the Canada-US treaty. The consequences of having PE in Canada are significant. The profits attributable to the PE will be subject to Canadian income tax. The PE will also create tax liability for non-resident employees working at the PE, which will result in additional compliance and compensation costs. There may be indirect tax consequences as well.This article reviews the PE provision of the Canada-US treaty in light of the OECD alternative provision and the UN model provision, discusses the implications for providers of cross-border services, and makes recommendations to assist businesses in monitoring compliance.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.825
Threshold uncertainty score0.336

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.007
GPT teacher head0.187
Teacher spread0.180 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2011
Admission routes1
Has abstractyes

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